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Congressman JV Ejercito under declares his California property

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By Raïssa Robles

Unlike Senators Loren Legarda and Manny Villar, senatorial candidate JV (Joseph Victor) Ejercito has consistently disclosed his California property, but always at a lower price than what he paid for it.

On April 14, 2000, JV Ejercito bought a single-storey, two-bedroom house in Redwood City, San Mateo County, California for US$609,500. He was not a politician then but a prominent businessman, mainly because of his affiliation by blood to Joseph Estrada, the sitting Philippine president at that time. JV Ejercito first disclosed his Redwood City home in 2001 when he became mayor of San Juan City.

Below are the documents on JV Ejercito’s property given to me by a Fil-Am lawyer named “Steve” who I will describe as one of the millions of Filipinos who migrated overseas, disgusted and disappointed with the never-ending corruption and lack of progress and equity in the Philippines.

In the case of Congressman JV Ejercito, he consistently disclosed his Redwood City real estate in his SALNs throughout the years he was mayor and congressman. But always, he stated his purchase price at P22,5000,000 – or lower by P2.5 million than what property records say he had paid for it.

For a long while, I could not verify whether JV Ejercito had declared his Redwood property in his SALN because the House of Representatives had blocked total media access to the SALNs until the House had issued rules for getting them. Which the House never did. And, I suspect, never intended to do in the first place.

Fortunately, the Philippine Center for Investigative Journalism uploaded JV Ejercito’s SALNs on its website recently when PCIJ did a story linking Ejercito to offshore accounts.

It was only then I was able to find out that JV Ejercito did declare his property.

But I could not understand why his declared acquisition cost of P22,5000,000 was P2,554,329.80 lower than the listed US dollar purchase price of US$609,500. Because in April 2000 when he bought the property, the forex rate was P41.1884 to the dollar.

JV Ejercito is a businessman by profession and we can safely assume he knows how to calculate forex. Using the Philippine Central Bank’s average forex rate for April 2000, his purchase price of US$609,500 would be roughly equivalent to P25,104,329.80.

This makes his disclosed acquisition cost of P22,550,000.00 lower by P2,554,329.80 than the listed US dollar purchase price:

I had a difficult time chasing Congressman  JV Ejercito for his side on the issue. No one was in his office in Congress.

While trying to reach him, I researched his property some more and found the following pictures of his bedroom, bathroom, dining room, living room and kitchen on the real estate website Zillow:

Finally, I was able to reach Congressman JV Ejercito through – of all places – the social networking site Twitter. I tweeted a question, asking him why it seems the price disclosed on his SALNs was consistently lower than what he had paid.

JV Ejercito initially replied:

I asked him again. He tweeted back:

At that time, he was due to guest on TV. His final tweet to me was:

To those wondering why I’m persisting in writing about SALNs of high government officials, it is because the filing of SALNs is one very important duty of a government official or employee. It is enshrined in our 1987 Constitution and in our laws. It is a tool to help keep those in government from going over to the dark side.

Perhaps lawmakers will take their SALNs more seriously if we, the citizens and the governed, constantly look at them.

UPDATE: May 17, 2013, 2;30 PM

A commenter named “Drill Down” posted the following remark below:

valuing us property in peso could be quite tricky because we don’t really know when the us dollar was acquired.

imo, foreign properties and accounts should be listed in the currency of the foreign country in the saln. makes it self-explanatory.

My comment:

That could run into problems because of our law on the secrecy of foreign currency accounts.

In any case, I did some rough calculations. Let’s assume that  P22,5000,000 was the correct peso equivalent for US$609,500. To get the exchange rate that was used, I divided P22,500,000 by US$609,500. That gave me a foreign exchange rate of P36.91 to the US dollar.

Then I looked at the BSP website to see when the forex was around that amount. That was in 1997 when JV Ejercito was 28 years old, since he was born on December 26, 1969. Pls. see for yourself.

However, notice – and this I forgot to mention – that Ejercito did not pay the full amount in cash. He took out a loan with Fidelity National Title Co., which he continues to pay to this day – based on his SALNs. So the exchange rate he used was not dependent on when he obtained the dollars.

In any case, you’re right, “Drill Down“. The senators and congressmen and Civil Service Commission should all come together and agree how to disclose real property located abroad.

__________________________________________________________

Related Stories:

Sen. Manny and Cynthia Villar own 2 California properties; senator’s SALN does not list them

Supreme Court justices, military & police top brass should disclose their SALNs to the public 

Dear Senator Loren Legarda, how many SALNs did you file for the year 2011?

A third proof that my copy of Senator Legarda’s SALN is genuine

 

Comments

  1. SALN: Good law, bad results
    BY MALOU MANGAHAS
    WEDNESDAY, MARCH 14TH, 2012

    First of Two Parts

    WHATEVER THE outcome of the impeachment trial of Supreme Court Chief Justice Renato C. Corona, a once-ignored piece of document seems to be getting the attention it deserves at last. The question, however, is whether or not the general public’s increased familiarity with the Statement of Assets, Liabilities, and Net Worth or SALN would finally shame public servants into taking it seriously and accomplishing it beyond token compliance.

    Read more:

    http://pcij.org/stories/saln-good-law-bad-results/

    • SALN: Great filers, big barriers
      BY MALOU MANGAHAS
      THURSDAY, MARCH 15TH, 2012

      Last of Two Parts

      AMID the rampant misdeclaration or underdeclaration of their Statements of Assets, Liabilities, and Net Worth (SALN) by senior public officials lies a prettier, often overlooked, picture: the few good men and women in high and low positions who follow the law most diligently and truthfully.

      To this minority of good SALN filers belong a number of Cabinet members and officials of constitutional commissions. The ties that bind them are a few things. Most came from the private sector or the professions where they founded their wealth. They are political appointees, but until they became part of government nearly all had no history of engaging in party politics or running in elections. Of fairly senior age, most are self-made names with fairly good credentials or work portfolio, even before public office beckoned.

      Read more:

      http://pcij.org/stories/saln-great-filers-big-barriers/

  2. Thank you Raissa for keeping us informed of these anomalies. I notice though that bad deeds of politicians although being published do not last long in the tabloids. The bad articles about our politicians suddenly disappear and slowly but surely forgotten by the people. It is very sad that despite these evidences, nothing is done to bar these people into holding elective positions. Sana ‘pag may ebidensya nang gawaing kaduda-duda, huwag nang payagan pa nang COMELEC na tumakbo dahil pag nanalo, siguradong pagnanakaw ang aatupagin. It’s hightime that the Pork Barrel be stopped. Ninanakaw lang naman kasi.

    • paano nga ba ma-i-stop ang pork barrel? until now, i don’t when it started and who started it. I know, wala yan noong presidente pa si cory. kanino government nag-umpisa iyan? I’m really curious. wnat are the ways we as citizens can stop it? P’wede bang ang President lang ang mag decide niyan? we know that it’s the root of all evil. and that’s the reason why the children and relatives of these politicians are running para makakuha ng biyaya. pati mga actors and actresses, tumatakbo. para nga namang meron silang natatanggap pag laos na sila.

  3. I always wonder Y can-afford public officials here ‘loves’ to buy a House & Lot in USA, from our ‘peso’ to ‘USD dollar’ at exchange of 41X or 52X of our currency for houses like I see in this blog!

    P25M for $609,500.00? If one builds a house with a good lot here for P22M, the house must look 41X or 52X more lovely that what is shown here! In my experience there in US, the inner walls are chalk-board or soft materials one can punch a hole through it.

    What make this house lovely are the ‘contents’ – the sets, refs, chairs, etc. We have better good looking here. If one from here uses PESOS to get DOLLARS there, that’s a lot of waste of money for such a property in USA. This house is so near another house from the looks of it. Nothing special about its outside features, design, etc. With P22M money, building a house here, more elegant taste at the outside design, maybe approx P5M-P6M with Lot for P2M-P3M. That’s about P9M. One still has P13M for contents. The house concrete jack built hollow-blocks.

    What I’m saying is sayang ang PESOS however it was acquired. But if the USD money was earned there, it is okay. I know of one whose US property before the recession was $!M+ but overtaken by recession is now only half of that, and difficult to sell or dispose now.

    Anyway, back to this topic on SALNs. HOY! Hey! Ang mga kahoy! Public officials! Your days are dumbered! Be HONEST! Stop wasting our PESOS for properties ABROAD and in USA!
    Buy HERE! So we can check ON YOU PEOPLE how you are DOING!

    Do not feel OVER-CONFIDENT you won’t be CHECKED and CAUGHT! Look and where is GMA now! Where is FM? You will always be held answerable here and hereafter. Be sensitive. Hoy! Ang Kahoy!

    • @leona. totoo ang sabi mo. it’s the prestige that they want at keeping up with the politicians who have houses there. isip ni Legarda, si Lapid nga na walang sinabi sa senate, may bahay sa states, siya pa. i’ll top them all. Sa NY ang akin at prestigeous na building.

      • at isa pa dahilan kaya nabili silang lahat ng bahay duon ay pag dumating ang panahon na magkaroon sila ng kaso/makasuhan sa atin escape na sila duon. at least may sarili ng bahay na titirhan.
        samantalang lahat ng mga pulitiko na yan palaging “nasumpa” na makabayan daw sila. eh bakit sa ibang bansa nabili ng mga ari-arian?

    • right, leona. their secret hideaways are no longer so secret, no longer sacred too. they’re being exposed one by one. their nest eggs revealed.

  4. i’vebeen following u since corona’s impeachment. lalong komokolo ang dogo ko s mga korakot. at ang kapal ng mga mukha hindi lang ang mga estradas. salamat at mayroong raissa. keep up the good work.

  5. THE ADAGE THE FRUIT DOES NOT FALL FAR FROM THE TREE ( TO QUOTE OUR ESTEEMED VICE PRESIDENT} HAS ALWAYS BEEN PROVEN AND ACCEPTED. THE MEDIA WOULD BE DOING OUR COUNTRY THE GREATEST GOOD IF IT WOULD HEADLINE THIS DAILY TO REMIND THE ELECTORATE IN THEIR DELIBERATION AT THE TIME THEY CAST THEIR VOTE. IT CHALLENGE THE COMMON SENSE TO THINK THAT THESE CANDIDATE BANKROLL THEIR CAMPAIGN FOR PATRIOTISM.

  6. Ayoko talaga kay JV Ejercito, mula sya sa mga angkan ng magnanakaw at eto na ang resulta! wag iboto ang magnanakaw!

  7. Aba si JV Ejercito marami palang itinatago! wag iboto! magpapayaman lang to mula sa pera ng bayan!

  8. Perhaps once and for all, properties/assets abroad should have a uniform date and method to base the value calculation, i.e. as of Dec 31 of the previous fiscal year since it would be within the dates scope of the latest SALNs.

  9. CONTINUE SALN SCRUTINY!

    Now hopefully this balances out the concerns of those who think only specific persons or parties are being targeted. Seen from a larger perspective, this kind of investigation/discussion is valuable because it keeps our officials in check.

    Now, there are still ways of evading all of this by putting it in the names of dummies but that only makes it harder for them, since it involves more people who need to conspire with.

    • Continued scrutiny of SALNs and analyzing credibility/capability of financial resources at the point of acquisition is indeed an advocacy and apostolate that will lead towards “daang matuwid.”
      This ought to be a regular feature of CPM. We must all endeavor to get the President to push…very seriously….for the enactment of the “Freedom of Information” bill.

    • How public officials are found out for gross violations of their SALNs can still face the public and their friends, etc. If they are already ugly, the look more ugly to us!

      If they are handsome or beautify, they look sooo UGLY! Inside and outside.

      Kapal muks talaga! Even their dummies looks uglier than ’em!

      Right…We should SCRUTINIZE THEIR SALNs for the sources of UGLIES!

  10. Raissa wrote:

    “But I could not understand why his declared acquisition cost of P22,5000,000 was P2,554,329.80 lower than the listed US dollar purchase price of US$609,500. Because in April 2000 when he bought the property, the forex rate was P41.1884 to the dollar.

    “JV Ejercito is a businessman by profession and we can safely assume he knows how to calculate forex. Using the Philippine Central Bank’s average forex rate for April 2000, his purchase price of US$609,500 would be roughly equivalent to P25,104,329.80.”

    FACTSl

    1. JV is a political science graduate of De La Salle and a politician by profession.
    2. Before he became Mayor of San Juan in 2001 at age 31, he was active in the youth sector during the presidency of his father, Erap, from 1998 to 2001.
    3. The US property was acquired in 2000 while Erap was the president.
    4. JV thought that the said property was purchased in the 90s.
    5. JV has been declaring in his SALN the property although at a lesser purchase value since he entered government service in July 2001.
    6. The property was purchased at around PHP25M but declared for PHP22M only.

    MY THEORY

    1. It was Erap who bought the property in the name of JV, probably without JV’s participation financially and physically.
    2. JV was informed about the subject US property but not the particulars.
    3. When he became mayor of San Juan in 2001, he had to declare the value of the property in his SALN and he signed the SALN prepared for him by somebody.
    4. Without much concern on the accuracy of the SALN, the purchase value of the US property was pegged at PHP22M, which figure gained currency up to the present.

    My point is that, in 2000, JV had no personal capability to purchase the subject US property . It was Erap who bought the property and placed same in the name of JV. That the lower value declared in the SALN of JV was not really to hide the true value but merely inadvertence because we all know that Erap was worth much more, with or without jueteng money, etc.

    • @Rene-Ipil……very credible analysis….most especially financial capability of the listed owner.

    • Did JV report sufficient taxable income the year before for that year’s P25M purchase?

      BIR na naman ito, just like ex-CJ Corona and his married daughter & husband.

      Tama kayo @Tomas at @ Rene…

  11. valuing us property in peso could be quite tricky because we don’t really know when the us dollar was acquired.

    imo, foreign properties and accounts should be listed in the currency of the foreign country in the saln. makes it self-explanatory.

      • This JV Ejercito is too ‘bastos in replying to your queries….we don’t need a senator like that…

        • @kevinj, he is not the only one. Most of them them if not all of them are the same. They have time for an ambush (kuno) interview if the question will be about their good “papogi” plans or accomplishments or if there is case against or pro a co- politicians which may add to his SWS favorable ratings.
          But, when the interview is an anomaly they cannot easily deny and about themselves, just like in the court of law Philippine Style….the delay tactics.

  12. ..these candidates are so engrossed with running and winning in Senate,,knowing that once they are in power,they can manipulate everything that was written about them,,especially these illegal transactions which the people from the slum areas,the people who has no access to information does not know about…they got elected because of them..thanks Ms Raissa for continually exposing these anomalies..May your tribe increas!!

  13. Dear Raissa,

    Could it be that the current price is reflected in the estimated price and not the real value, based on the current market value of local properties? The estimated price is 873,499 but not forsale. I think it remains a buyer’s market and not a sellers market. The property is only worth what a buyer is willing to pay for it. I took a washing on a home that I purchased and sold later at a lower value. These snakes will find some way to wiggle out of the issues regarding SALN’s.

  15. But, Loren also consistently under declared her NY property, which she owns wholly and which contradicts her “equity” declaration of it at only about P7M, a ridiculously low price in that area.